The Financial Action Task Force (FATF),an independent intergovernmental
Organisation has published a paper looking into the money laundering and
terrorism financing risks involved with digital currencies.
Coincidentally, the paper was published just days after the OECD published
a white paper ' a working paper on bitcoin'.
The paper points out that ' virtual currency has the potential to improve
payment efficiency and reduce transaction costs for payments and fund
transfers.Bitcoin may potentially provide benefit to existing online
payment systems like paypal".
On the RISK side,FATF concludes digital currencies are "potentially
vulnerable to money laundering and terrorist finance abuse".
Source; Global Financial Integrity.